A closer look at the key measures
The Western Australia State Budget for the fiscal year 2024-25 was handed down by Treasurer Rita Saffioti on 9 May 2024, highlighting the state’s strong economy and significant investment in infrastructure. This article provides an overview of the key measures announced in the budget, shedding light on its impact on various sectors and stakeholders.
Financial outlook
The budget forecasts a surplus of $3.2 billion for the current year, with an additional $2.6 billion surplus projected for 2024-25. These surpluses play a crucial role in funding the government’s record investment in infrastructure while maintaining net debt at a substantially lower level compared to other states.
Infrastructure investment
One of the focal points of this year’s budget is the substantial investment in infrastructure. The government plans to allocate $1.8 billion to promote economic growth and diversification. This includes $373 million for enhancing the state’s ports and $352 million for developing outdoor adventure tourism infrastructure. Such investments are expected to create job opportunities and attract both domestic and international visitors, driving economic prosperity.
Healthcare and education
Recognising the importance of robust healthcare services, the state government has allocated over $3 billion to boost the health system. This funding will be utilised to expand hospital services, invest in regional health services, and develop additional healthcare infrastructure. Furthermore, the budget includes $1.3 billion for education and training, with a focus on building new schools and expanding the construction workforce.
Cost-of-living assistance
To alleviate the financial burden on households, the budget includes a comprehensive cost-of-living assistance package worth $762 million. One of the key highlights is a $400 electricity credit for households and small businesses, providing much-needed relief from utility bills. Additionally, the government has announced a stamp duty exemption for first-home buyers, increasing the threshold to $450,000 and extending concessions up to $600,000.
Infrastructure projects
The budget prioritises the completion and expansion of infrastructure projects. Metronet, a flagship project of Treasurer Saffioti, will receive a significant funding boost of $700 million from the state and federal governments. This investment will contribute to the project’s total cost, surpassing $12 billion. The government aims to open key pillars of the Metronet project, including the Yanchep extension and Ellenbrook services, before the end of this year.
Winners and losers
The budget brings several winners and losers. Parents of school-aged children will benefit from direct payments of $250 per high school student and $150 per primary school student. Regional travellers will experience more affordable airfares, thanks to an additional $64 million allocated to the Regional Airfare Zone Cap Scheme. Public sector workers, including teachers and nurses, will receive sizeable pay increases, with close to $3 billion set aside for additional public sector wages.
However, farmers facing drought conditions and challenges in the live sheep export industry were disappointed by the budget’s limited $8.6 million drought relief package. The government’s decision to retain a significant share of GST revenue also drew criticism from some eastern states.
Conclusion
The 2024-25 Western Australia State Budget reflects the state’s strong economy, growing population, and commitment to investing in key sectors. With a surplus expected for this year and the next, the government can continue its infrastructure development while maintaining manageable levels of debt. The budget’s focus on healthcare, education, cost-of-living assistance, and infrastructure projects aims to enhance the quality of life for Western Australians and foster sustainable economic growth.
